Hi Ritu,
=PMT(6%/12,30*12,180000)
interest rate of 6 percent annually is divided by 12, because you are
calculating monthly payments and so need a monthly interest rate.
number of payments over the 30-year mortgage period is multiplied by 12,
because you will make 12 monthly payments each year.
present value is the starting amount of the mortgage loan before interest.
(This value is entered without a thousands separator: 180000 instead of
180,000.)
Pressing ENTER would display the monthly mortgage payment: ($1,079.19). The
result is a sum that must be paid out, and thus a negative number, which in
this example is indicated by red font color and parentheses.
Let me know if this is what you are looking for.
Thanks,
Peggy
